BEIJING — Daimler and Chinese partner BYD signed an equity transfer agreement to restructure their China EV venture, Denza.
Daimler said its holdings in Denza will be reduced to 10 percent, and BYD will hold the remaining 90 percent equity interest after the transfer.
In 2022, Denza will introduce new models for China and seek further growth opportunities, Daimler said in a statement on Friday. The 50-50 joint venture was started in March 2012.
BYD is currently boosting premium electric models to compete with Nio and Tesla.
Tepid demand for Denza cars and the venture’s weak profitability have been a concern at Daimler for years, even as sales for its Mercedes luxury vehicles continued to surge in China. Daimler and BYD established the brand a decade ago to tap growth in the Chinese new-energy vehicle market.
Daimler had folded the Smart minicar brand into a joint venture with Geely Holding in China and sold the unit’s French factory to Ineos Group. The moves are part of a strategy shift under Daimler CEO Ola Kallenius to focus on luxurious cars packed with sophisticated electronic gadgetry.
Reuters and Bloomberg contributed to this report.
